Natural Gas Shippers Express Significant Interest in Algonquin Gas Transmission's ''East-to-West Expansion'' Project - Duke Energy

News Release
Nov. 9, 2006

Natural Gas Shippers Express Significant Interest in Algonquin Gas Transmission's ''East-to-West Expansion'' Project

BOSTON – Transportation customers responding to Duke Energy Gas Transmission’s open season on its Algonquin pipeline system have indicated they may need more than 2 billion cubic feet a day (Bcf/d) of new natural gas pipeline capacity to meet the demands of a growing Northeast market.

“We are pleased with the exceptional support we received for our East-to-West Expansion project,” said Bill Yardley, DEGT’s vice president, marketing, business development and customer service. “The demand for natural gas in the Northeast continues to grow and this project gives our shippers an opportunity to serve their markets by accessing incremental supplies from the eastern end of our Algonquin Gas Transmission system, including new LNG-sourced supply.

“This is an example of how we continue to develop projects to help meet the needs of our customers by providing increased access to secure and reliable supply at multiple locations along our system," Yardley added.

Advantages of the East-to-West Expansion include:

  • Economical access to high-growth Northeast markets through existing mainline infrastructure
  • Access to new sources of supply
  • Strategic proximity to eastern end supplies
  • Flexible in-service date
  • Use of existing rights of way

Algonquin closed out the non-binding open season on Oct. 27 for the project that will use existing mainline infrastructure, adding incremental expansion as needed. Plans include using existing rights of way, where practical, to minimize environmental and landowner impacts.

Final design of the system to accommodate the additional 2 Bcf/d will depend on shipper commitment. Service on the proposed project could begin as early as Nov. 1, 2008.

Duke Energy Gas Transmission (DEGT) is a North American leader in the long-haul transportation and storage of natural gas. For more than three-quarters of a century DEGT and its predecessor companies have developed the critically important pipelines and related energy infrastructure that connects natural gas supply sources to premium markets. Based in Houston, Texas, the company's assets include about 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in the U.S. and Canada. DEGT also has natural gas gathering, processing and distribution assets and natural gas liquids operations that are among the largest in Canada. In June, Duke Energy announced a plan to separate its electric and gas businesses. DEGT, along with Duke Energy’s 50 percent ownership in Duke Energy Field Services, expects to become a stand-alone, publicly traded company known as Spectra Energy Corp. Targeted separation date is Jan. 1, 2007.  More information can be found at: http://www.degt.duke-energy.com.

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: http://www.duke-energy.com.

Contact: John Sheridan
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